Escalade Q1: Operational Improvements To Continue (Rating Upgrade)

  • Upgrading Escalade to a buy as management has effectively mitigated tariff impacts and strengthened the balance sheet. Operational improvements, including cost-cutting and supply chain diversification, have boosted margins despite modest top-line declines. Management's proactive approach to tariffs and focus on operational efficiency outweighs current sales softness; future sales growth remains a secondary focus.